Correlation Between Prabos Plus and Raiffeisen Bank
Can any of the company-specific risk be diversified away by investing in both Prabos Plus and Raiffeisen Bank at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Prabos Plus and Raiffeisen Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prabos Plus as and Raiffeisen Bank International, you can compare the effects of market volatilities on Prabos Plus and Raiffeisen Bank and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Prabos Plus with a short position of Raiffeisen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prabos Plus and Raiffeisen Bank.
Diversification Opportunities for Prabos Plus and Raiffeisen Bank
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prabos and Raiffeisen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Prabos Plus as and Raiffeisen Bank International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raiffeisen Bank Inte and Prabos Plus is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Prabos Plus as are associated (or correlated) with Raiffeisen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raiffeisen Bank Inte has no effect on the direction of Prabos Plus i.e., Prabos Plus and Raiffeisen Bank go up and down completely randomly.
Pair Corralation between Prabos Plus and Raiffeisen Bank
Assuming the 90 days trading horizon Prabos Plus as is expected to under-perform the Raiffeisen Bank. In addition to that, Prabos Plus is 1.08 times more volatile than Raiffeisen Bank International. It trades about -0.01 of its total potential returns per unit of risk. Raiffeisen Bank International is currently generating about 0.09 per unit of volatility. If you would invest 44,490 in Raiffeisen Bank International on September 19, 2024 and sell it today you would earn a total of 4,970 from holding Raiffeisen Bank International or generate 11.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Prabos Plus as vs. Raiffeisen Bank International
Performance |
Timeline |
Prabos Plus as |
Raiffeisen Bank Inte |
Prabos Plus and Raiffeisen Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Prabos Plus and Raiffeisen Bank
The main advantage of trading using opposite Prabos Plus and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prabos Plus position performs unexpectedly, Raiffeisen Bank can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Raiffeisen Bank will offset losses from the drop in Raiffeisen Bank's long position.Prabos Plus vs. Volkswagen AG | Prabos Plus vs. Philip Morris CR | Prabos Plus vs. Photon Energy NV | Prabos Plus vs. Kofola CeskoSlovensko as |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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